PoM 6th ed. chapter 04

Kotler et al., Principles of Marketing, 6th edition © Pearson Education Limited 2013

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it’s good and good for you

Chapter 4Managing marketing

information to gain customer insights


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Learning objectives

• Marketing information and customer insights• Assessing marketing information needs• Developing marketing information• Marketing research• Analysing and using marketing information• Other marketing information considerations

Topic outline


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Marketing information and customer insights

• Fresh and deep insights into customers’ needs and wants.

• Difficult to obtain– Not obvious– Customer’s unsure of their behaviour.

• Better information and more effective use of existing information.

Customer insights are:


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Marketing information and customer insights (Continued)

• Companies are forming customer insights teams– Include all company functional areas– Collect information from a wide variety of

sources– Use insights to create more value for their

customers.

Customer insights


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Marketing information and customer insights (Continued)

Marketing information systems (MIS) consist of people and procedures for:– assessing the information needs– developing needed information– helping decision makers use the information for

customer.

Marketing information systems (MIS)


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Marketing information system

Figure 4.1 The marketing information system


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Assessing marketing information needs

MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers and marketing service agencies.


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Assessing marketing information needs (Continued)

• Balancing what the information users would like to have against what they need and what is feasible to offer.

Characteristics of a good MIS

User’s Needs

MIS Offerings


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Developing marketing information

Internal data

Marketing intelligence

Marketing research

Marketers obtain information from


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Developing marketing information (Continued)

Internal databases are electronic collections of consumer and market information obtained from data sources within the company network.

Internal data


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The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace.

Competitive marketing intelligence


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Marketing research

Marketing research is the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation.


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Steps in the marketing research process

Figure 4.2 The marketing research process


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Marketing researchDefining the problem and research objectives

Exploratory research

Descriptive research

Causal research


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• Outlines sources of existing data.• Spells out the specific research

approaches, contact methods, sampling plans and instruments to gather data.

Marketing researchDeveloping the research plan


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Management problem

Research objectives

Information needed

How the results will help management decisions

Budget

Marketing researchWritten research plan includes:



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Secondary data consists of information that already exists somewhere, having been collected for another purpose.



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Secondary dataAdvantages

Cost

Speed

Could not get data otherwise

Disadvantages

Current

Relevant

Accuracy

Impartial


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Primary data consists of information gathered for the specific research plan.



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Planning primary data collectionResearch

approaches

Contact methods

Sampling plan

Research instruments

Marketing research


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Observational research involves gathering primary data by observing relevant people, actions and situations.

Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment.

Market researchResearch approaches


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Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences and buying behaviour.

• Flexible• People can be unable or unwilling to answer• Gives misleading or pleasing answers• Privacy concerns



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Experimental research is best for gathering causal information—cause-and-effect relationships.



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Marketing research Strengths and weakness of contact methods

Mail Telephone Personal OnlineFlexibility Poor Good Excellent Good

Quantity of data collected

Good Fair Excellent Good

Control of interviewer effects

Excellent Fair Poor Fair

Control of sample Fair Excellent Good Excellent

Speed of data collection

Poor Excellent Good Excellent

Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent

Table 4.3 Strengths and weaknesses of contact methods


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• Focus groups– 6 to 10 people– Trained moderator– Challenges

• Expensive• Difficult to generalise from small group• Consumers not always open and honest

Marketing researchContact methods



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Online marketing research

Internet surveys

Online panels

Online experiments

Click-stream data

Online focus groups


Marketing researchContact methods


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Advantages

• Low cost• Speed• Higher response rates• Good for hard to reach groups

Marketing research Online research



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Sample is a segment of the population selected for marketing research to represent the population as a whole.– Who is to be studied?– How many people should be studied?– How should the people be chosen?

Marketing researchSampling plan


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Probability sample

Simple random sample Every member of the population has a known and equal chance of selection

Stratified random sample The population is divided into mutually exclusive groups and random samples are drawn from each group

Cluster (area) sample The population is divided into mutually exclusive groups and the researcher draws a sample

Non-probability sample

Convenience sample The research selects the easiest population members

Judgment sample The researcher uses their judgment to select population members

Quota sample The researcher finds and interviews a prescribed number of people in each of several categories

Marketing researchSampling plan—types of samples

Table 4.4 Types of samples


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Marketing researchResearch instruments

Questionnaires• Most common• Administered in person, by phone

or online• Flexible• Research must be careful with

wording and ordering of questions.



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• Closed-end questions include all possible answers, and subjects make choices among them– Provide answers that are easier to interpret and

tabulate.• Open-end questions allow respondents to

answer in their own words– Useful in exploratory research.

Marketing researchResearch instruments—questionnaires



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Mechanical devices

People meters

Checkout scanners

Neuro-marketing

Marketing researchResearch instruments



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Collecting the informationProcessing the informationAnalysing the information

Interpret findingsDraw conclusions

Report to management

Marketing researchImplementing the research plan


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Analysing and using marketing information

Managing detailed information about individual customers and carefully managing customer touch points to maximise customer loyalty.

Customer relationship management (CRM)


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Analysing and using marketing information (Continued)

Customer purchases

Sales force contacts

Service and support

callsWeb site

visits

Satisfaction surveys

Credit and payment

interactionsResearch studies

Customer relationship managementTouchpoints


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Distributing and using marketing information

Information distribution involves entering information into databases and making it available in a time-useable manner.

• Intranet provides information to employees and other stakeholders.

• Extranet provides information to key customers and suppliers.


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Other marketing information considerations

Marketing research in small businesses and non-profit organisations

International market research

Public policy and ethics

• Customer privacy• Misuse of research findings